Tag: Asia

Global courier groups may sue over India post changes

Global courier companies including DHL and Federal Express will take legal action against India’s postal authority if it succeeds in winning amendments to the country’s postal laws that they fear could shut down some courier businesses. The courier companies said they were “shocked and surprised” by what they called “dramatic changes” proposed by India’s department of posts, which wants to create a new postal regulator and charge a levy on courier company revenues to pay for publicly run services to remote areas. The postal department is also seeking to redefine what constitutes a “letter” in a long-heralded reform to India’s 108-year-old postal service laws. This would in effect impose a state monopoly on the fastest growing segment of the courier industry. An executive of the Express Industry Council of India (EICI), which represents both private Indian and foreign courier operators, said the body would fight these proposals “all the way”, following a fiery meeting on the subject yesterday in Mumbai.

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Mail service deregulation urged on Japan Post privatization

Japan’s Fair Trade Commission has submitted a report recommending deregulation to allow private companies to take part in mail services Japan Post monopolizes, FTC officials said Friday. Japanese law requires a mail service provider to ensure uniform service throughout Japan with 100,000 post boxes, effectively barring private companies from undertaking such services, the report said. When the Japanese postal system starts being privatized in October 2007, private companies should be encouraged to undertake mail services in urban areas where such services can pay, it said.

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Tough norms for Indian courier companies

With private courier companies eating into the revenues of postal department, the government today sought to give India Posts exclusive rights to carry and deliver letters weighing up to 300 grams. “The monopoly over a specific part of the letter mail of all descriptions up to a specific weight limit is essential as Department of Post is required to fulfil the Universal Service Obligation, which involves postal coverage to financially non viable areas at affordable rates for the common man,” said the department, which has posted the draft Indian Post Office Amendment Bill, 2006 on its website.

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Deutsche Post CEO Zumwinkel mulls acquisitions in China for DHL unit

Deutsche Post AG chief executive Klaus Zumwinkel told Handelsblatt economic daily that the company could seek to expand its DHL logistics operations in China via acquisitions. ‘If there is an attractive takeover target there, then we will take a close look at it,’ Zumwinkel told the newspaper. He also said that DHL wants to increase sales in China by 30-35 pct per year. DHL has a 40 pct share of the Chinese logistics and express mail market.

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Japan Post sets up first overseas office in Beijing

Japan Post, the state-owned mail operator set for privatisation, said Monday it would open its first overseas office in Beijing to explore opportunities in China’s booming cargo market. The office, which is expected open around mid-May, will conduct research on Chinese demand for international cargo services.
Japan Post is looking overseas for new growth opportunities with its domestic mail services losing money. It aims to set up its second overseas foothold in Shanghai, he said. “We picked China as the first base because it is the market we should pay the highest attention to,” Japan Post senior managing executive officer Yoshiaki Hompo told reporters.

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